Danske Bank hocks junk in ECB

Both banks said they don’t have any need to fund themselves through the ECB, but made use of the loans because they were given at favorable terms–with a 1% interest rate–against securities that the banks wouldn’t otherwise be able to use.

It should be noted that the Danish Central Bank specifically exempts own issues from the securities a bank can use as collateral when giving loans to banks.

About the Author

I have a degree in managerial economics from Aarhus University -
specialising in strategy.
Have been employed in various firms private, state and semi-state.
Branches have been: Transport (rail and ferrylines), mashine industry,
building, energy and university administration.